catastrophe bonds - 0 views
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pjt111 taylor on 16 Feb 16"They're designed to be triggered if something that's considered as rare as once every 100 years takes place during the several-year duration of the bond's life. If that happens -- say, if winds blow up Westport's Main Street over 150 mph -- then the buyer stands to lose the entire principal. But if that doesn't happen, which is the norm, the buyer enjoys a high rate of return, such as the 9 percent average across the sector in 2012, according to Artemis.bm, an industry news and analysis website."